Franchises that fit: looking for a business opportunity that matches your passion and pocketbook? Try these hot and affordable franchises on for size.BOEING 737s The Boeing 737 is an American short to medium range, single aisle, narrow body jet airliner. With over 7,000 ordered and over 5,000 delivered, it is the most ordered and produced commercial passenger jet of all time and has been continuously manufactured by Boeing since 1967. AREN'T THE ONLY THINGS FLYING HIGH AT THE LOS ANGELES INTERNATIONAL Airport “LAX” redirects here. For other uses, see LAX (disambiguation). “KLAX” redirects here. For other uses, see KLAX (disambiguation). Los Angeles International Airport (IATA: LAX, ICAO: KLAX, FAA LID: LAX these days. So are the sales at Cinnabon. That's good news for Clarence Daniels, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Concession Management Services Inc., a food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. business that operates outlets in five airports across the country. Using a $200,000 bank loan plus earnings from his existing concession company, Daniels purchased a Cinnabon franchise at LAX in 1999 for nearly $280,000. The first year in business, the store earned $850,000 in revenues. Although the company suffered financially after Sept. 11, 2001, Daniels' franchise is still riding high with $600,000 in sales, almost double the amount generated by the average Cinnabon found in shopping malls. And that's just at one of two sweet and sticky Refers to an application or service that keeps you on a Web site. For example, stock quotes, glossaries, educational material, chat rooms and similar offerings give you reason to remain on the site, while it allows the company to show you more ads or proprietary messages. shops that he owns at the airport. Daniels also has a second Cinnabon shop he acquired in 2002 for $75,000, not including the franchise fee. Sales at this store are about $400,000 a year. Between the two franchises, he has 12 employees. When Daniels, 54, decided to become a franchisee, he already operated three food-related businesses at LAX. But the opportunity to be linked with a proven business concept known to millions of people in the nation was too sweet to pass up. "When we first opened our facilities at the Los Angeles International Airport, we had developed all of our concepts on our own so they were nonbranded and were not a part of a franchise system," says Daniels, who worked for food companies such as Aramark and the catering unit of Marriott Corp. before starting his own business in 1992. "But what became clear to me fairly early on was that if I wanted to grow [my business] the way I intended to grow, I'd be better off being a part of a national brand that was familiar to people, that had an enforced operational standard and that had marketing materials that would help me drive sales." For Daniels, purchasing a franchise meant gaining a competitive advantage in business. And he's not the only one looking to get ahead using this type of opportunity as leverage. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the International Franchise Association (IFA Immunofluorescent assay (IFA) A blood test sometimes used to confirm ELISA results instead of using the Western blotting. In an IFA test, HIV antigen is mixed with a fluorescent compound and then with a sample of the patient's blood. ), a trade organization in Washington, D.C., there are more than 320,000 franchised businesses in the nation, generating more than $1 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. annually. People wanting a piece of the entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. pie are buying into restaurants, personnel management firms, copy centers, and various other product and service-oriented businesses. Currently, more than 75 industries operate within the franchising format, a system based on a contractual agreement between a franchisor like McDonald's or Coverall cov·er·all n. A loose-fitting one-piece work garment worn to protect clothes. Often used in the plural. Noun 1. coverall - a loose-fitting protective garment that is worn over other clothing Cleaning Concepts and a franchisee, an entrepreneur entrepreneur (än'trəprənûr`) [Fr.,=one who undertakes], person who assumes the organization, management, and risks of a business enterprise. to whom the franchisor licenses its trade name and operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. . In return for the right to operate under the franchisor's name, the franchisee agrees to pay an initial fee known as a franchise fee--a cost that varies depending on the type of franchise selected--and an ongoing royalty payment to the franchisor. Royalty fees, which are a percentage of the franchise's gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. , typically fall within the 4% to 8% range, although some are higher depending on the level of service offered by the franchisor. To help prospective franchisees identify the right business, each year BLACK ENTERPRISE compiles a list of hot and affordable franchises for African Americans African American Multiculture A person having origins in any of the black racial groups of Africa. See Race. . This year's list of 15 accessible franchises is based on a national survey of more than 80 franchisors who are members of the IFA and included such criteria as the current number of African American franchise units. We also broke down the listing by identifying the best franchisors that fall into three categories: those under $50,000, $50,000-$200,000, and $200,000-$500,000. Our survey was conducted by BE Research. CONSIDER WHATS HOT Some franchisors offer products such as doughnuts and tires, while others sell services like computer consulting and tax preparation. Some can be operated by a sole entrepreneur from home, while others require several employees in a separate outside facility. "There's really a franchise for every budget out there," says Don DeBolt, president of the IFA. "You can invest a few thousand dollars and obtain a commercial or residential cleaning service or you can invest up to millions of dollars for a Ritz Ritz elegant and luxurious hotel opened in Paris in 1898 by César Ritz; hence, ‘ritzy, putting on the ritz.’ [Fr. Hist.: Wentworth, 429] See : Luxury Carlton Hotel Carlton Hotel can refer to:
No matter the type, size, or location, franchises are very popular business opportunities--some, of course, are more popular than others. But figuring out which ones are hot and which ones are not can be a challenge. To help make choosing a little easier, the IFA has identified six industries it calls "hot sectors." These sectors include automotive (Meineke), business-to-business (Mini-Tankers-USA), marketing and advertising (ValPak Direct Marketing Systems Inc.), executive recruiting and staffing (Express Personnel Services), business services (Geeks on Call), and food (Ben & Jerry's). The IFA Website (www.franchise.org) lists a variety of franchises in each of these industries. The list includes detailed information about each company, such as startup cost, franchise fees, support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services , and financing opportunities. Prospective franchisees can also take free courses offering instruction on how to investigate franchises, as well as information about the pitfalls of the industry and the terminology involved. DeBolt says each of these sectors has certain dynamics that make them popular picks. "Take the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. , for example," he says. "There are just a lot of possibilities in that area because people are not buying a new car every year. They're servicing their car and maintaining it in whatever manner necessary to run that car a few more miles, and that includes all the things that go with a car." Since many people are leaving corporate America to start their own businesses, DeBolt adds that the growing number of start-ups and the services that are required to keep them in operation create more opportunities in the business-to-business, marketing and advertising, staffing, and business sectors. "Many people are starting their own consulting businesses or whatever niche they have found, which is helping the business-to-business sector grow. Then there are a lot of new small businesses that can't afford to have their own in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. marketing and advertising departments, which impacts that sector," he explains. "The staffing and recruiting sector has had a pretty steady period of growth, simply because new businesses are being created all the time and need the appropriate staff to work with them. Sometimes they need [workers] on a temporary basis, which is where most of these franchise companies have specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. lately." Healthcare-related franchises are also on the rise, DeBolt says, noting two new franchises that provide services such as MRIs and home-based chemotherapy chemotherapy (kē'mōthĕr`əpē), treatment of disease with chemicals or drugs. One chemotherapeutic approach is the development of selectively toxic substances, i.e. delivery. Another trend is co-branding a practice in which existing franchise companies buy other complementary brands in their field and put them all under one roof. "A good example is Yum! [Brands], which owns Pizza Hut, KFC KFC Kentucky Fried Chicken (restaurant chain) KFC Kenya Flower Council KFC Kitchen Fresh Chicken (Kentucky Fried Chicken motto) KFC Kung Fu Cult (Cinema) KFC Kitchen Fixed Charge , and Taco Bell Taco Bell Corp., a subsidiary of Yum! Brands, Inc., is a Mexican-style quick service restaurant chain based in Irvine, California, United States. The restaurant has locations primarily in the United States and Canada, but also operates outlets in several other markets. ," DeBolt says. "What these companies do is in many locations they will present two or more of these brands under the same roof, so ifa group of friends [go out to eat and] one person wants pizza and another wants hamburgers, they don't have to go to a place that only has pizza or only has hamburgers. They are able to go to a place that has all of them on the menu." MAKE THE CHOICE Becoming a franchisee begins with deciding which franchise you want to operate. Start by taking some personal inventory. Determine what level of investment you are willing to make and possibly lose. No matter what venture you pursue, there's always risk involved, so make sure you are in a solid financial position to make the purchase. Consider your goals. Do you want a small franchise or one that will afford you the opportunity to grow? For instance, commitment to growth was one of the main things Daniels looked for in a franchise: "I wanted to be with a company that had multiple brands available to it, so Cinnabon really did fit the bill for us because Cinnabon is owned by AFC Enterprises AFC Enterprises NASDAQ: AFCE is the Atlanta-headquartered company that owns Popeye's Chicken & Biscuits. AFC Enterprises is a publicly-traded company. AFC was formerly the franchiser of Seattle's Best Coffee and Cinnabon. , [which also] owns Popeye's Chicken and Church's Chicken Church's Chicken is a U.S. chain of fast food restaurants specializing in fried chicken. The chain was founded as Church's Fried Chicken To Go by George W. Church, Sr. on April 17, 1952 in San Antonio, across the street from The Alamo. ," he says. "I felt that if I did a good job with Cinnabon [then AFC (1) (Application Foundation Classes) A class library from Microsoft that provides an application framework and graphics, graphical user interface (GUI) and multimedia routines for Java programmers. ] had multiple brands that I could franchise." While setting your goals, also evaluate your skills. Selecting a franchise that requires experience you already possess will ease your transition. But don't rule out new areas as well. Most franchisors require training before your store doors will even open. When Jacqueline Harrison, 50, was looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. supplemental income to help finance her children's college education, the last thing she thought about doing was cleaning office buildings. Harrison had nearly 30 years of customer service experience under her belt, so when her husband, Collis, suggested purchasing OpenWorks, a commercial cleaning franchise that offers carpet cleaning, floor care, and window cleaning services, she was a bit reluctant. "But whenever we would pick up a copy of BLACK ENTERPRISE," she says, "we would always see the success stories of African Americans who had done really well with a particular franchise, so we decided to just do some checking up on it." After reviewing a mountain of materials, including the company's Uniform Franchise Offering Circular Offering Circular An abbreviated prospectus for a new security listing. Delivered to individuals and brokerage houses, these documents are issued to arouse interest in the new issue. Notes: An offering circular allows investors to access information regarding a new issue. (UFOC UFOC Uniform Franchise Offering Circular ), a disclosure document that spells out all aspects of the investment opportunity, and interviewing a number of OpenWorks franchisees, the Harrisons put down $6,000 in personal savings toward the initial franchise fee of $11,500 in January 1999 and began operating out of their home in Rancho Cucamonga, California Rancho Cucamonga is a city in San Bernardino County, California, United States. As of the 2000 census, the city had a total population of 127,743. By July 1, 2002 Census the fast-growing city's population had reached 143,711. . With their investment, financing of the remaining balance, and agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy 15% royalty, they received equipment, chemical supplies, and two weeks of training. By March of that same year, OpenWorks handed the Harrisons their first account--Tetra-Pak Inc., a warehouse that creates packaging for milk and orange juice cartons. One month later, the couple added GE Lighting as a client. Since Jacqueline and Collis both worked full-time jobs at the time, they were slow to take on any new accounts for a year and a half. The $2,000 monthly income they earned was enough to build a college fund for their daughter, Jasmine jasmine (jăs`mĭn, jăz–) or jessamine (jĕs`əmĭn), any plant of the genus Jasminum of the family Oleaceae (olive family). , 19, and son, Collis, 21. The Harrisons divorced shortly after, and Jacqueline was laid off from her job at the San Bernardino San Bernardino, city, United States San Bernardino (săn bûr'nədē`nō), city (1990 pop. 164,164), seat of San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1854. County Sun newspaper, where she had worked 10 years as the manager of the customer service department. Jacqueline decided it was time to expand her customer base. "I was in a situation where I had to make a decision. I had ho husband and no job, but I had a business, so what I decided to do was take my skills that I had learned over the years working with corporate companies and put those skills and energy toward my business." It worked. Harrison (who continues to share the business with her former husband) now has seven employees and nine accounts, including Coca Cola Noun 1. Coca Cola - Coca Cola is a trademarked cola Coke cola, dope - carbonated drink flavored with extract from kola nuts (`dope' is a southernism in the United States) , National Envelopes, Kimco Staffing Services, McClane Food Distribution, and Talbert Medical Group. Last year she earned about $100,000 in revenues and anticipates generating about $123,000 in 2003. FINANCING YOUR FRANCHISE As with any type of business, financing is important when considering a franchise. According to DeBolt, about 60% to 70% of franchises require an initial investment of less than $150,000. Of course there are those franchises that command much more in terms of total start-up costs and the initial franchise fee, but there are several options you can use to mine the cash. "Chances are if you have any capital, you can find a way to leverage that through Small Business Administration loans, family, and friends," DeBolt says. "Some franchise systems have their own in-house loan programs, actually about one-third of them, but the rest of them all have relationships with financial institutions that know their franchise model and are more inclined to work with it." ENLISTING PROFESSIONAL HELP For some people, making a choice about which franchise to purchase can be an arduous ar·du·ous adj. 1. Demanding great effort or labor; difficult: "the arduous work of preparing a Dictionary of the English Language" Thomas Macaulay. 2. process. Of course, you don't have to go it alone. There are companies that specialize spe·cial·ize v. 1. To limit one's profession to a particular specialty or subject area for study, research, or treatment. 2. To adapt to a particular function or environment. in helping prospective franchisees identify their passions, interests, and strengths--and at no charge to the would-be entrepreneur. Marc Kiekenapp, executive vice president of FranchiseBuyer L.L.C., says when people call his consulting service Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" they are confused and overwhelmed o·ver·whelm tr.v. o·ver·whelmed, o·ver·whelm·ing, o·ver·whelms 1. To surge over and submerge; engulf: waves overwhelming the rocky shoreline. 2. a. . "What we offer is kind of a matching service and matching qualified candidates to the company that they best profile for ... that profile is based on their lifestyle, what they can afford, investment level, and skill levels," he says. "We assist them in the process of weeding weed 1 n. 1. a. A plant considered undesirable, unattractive, or troublesome, especially one growing where it is not wanted, as in a garden. b. Rank growth of such plants. 2. through thousands of franchises down to the ones that are the best fit." Consultants spend four to six hours with each prospective franchisee to gauge what [hey like and dislike, as well as educate them about the franchising system. If preliminary conversations reveal that the person may be a good fit for a franchise, he or she is then given eight to 10 businesses to do what Kiekenapp calls "window shopping (jargon) window shopping - A term used among users of WIMP environments like the X Window System or the Macintosh at the US Geological Survey for extended experimentation with new window colours, fonts, and icon shapes. ." That list is cut down to two or three companies. The prospects are then sent to the respective franchisors to either make a sale or discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the process, and the franchisee doesn't pay for the service. If a deal is made, the franchisor pays the consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a . DeBolt encourages prospective franchisees to use this type of service and recommends similar companies, including Entrepreneur Source and FranChoice, all of which can be found on the IFA Website. "They are the tools you can use to help you make a decision," he says. "Nothing obligates you to do anything with these companies beyond talking to Noun 1. talking to - a lengthy rebuke; "a good lecture was my father's idea of discipline"; "the teacher gave him a talking to" lecture, speech rebuke, reprehension, reprimand, reproof, reproval - an act or expression of criticism and censure; "he had to them. On the other hand, you may want to spend your whole investigation process working with them."
Five Franchises Under $50,000
Black- Domestic
Owned Franchise
Company Type Units Units
Soft-Temps Computer 4 34
1280 N.E. Business Park Place Services
Jensen Beach, FL 34957 *
772-232-0103
West Sanitation/Aerowest Commercial 16 72
3882 Del Amo Blvd., #602 Cleaning
Torrance, CA 90503 *
310-793-4242
Tax Centers of America Tax 7 191
1611 E. Main St. Preparation
Russellville, AR 72801 *
479-968-8012
OpenWorks Commercial 29 380
2777 E. Camelback Rd., Ste. 350 Cleaning
Phoenix, AZ 85016 * 602-224-0440
Liberty Tax Service Tax 54 919
4575 Bonney Rd. Preparation
Virginia Beach, VA 23462 *
757-493-0694
2002
Start-Up Average
Company Costs Sales/Units
Soft-Temps $3,985-$4,985 N/A
1280 N.E. Business Park Place
Jensen Beach, FL 34957 *
772-232-0103
West Sanitation/Aerowest $5,000 N/A
3882 Del Amo Blvd., #602
Torrance, CA 90503 *
310-793-4242
Tax Centers of America $8,950-$13,500 4,500
1611 E. Main St.
Russellville, AR 72801 *
479-968-8012
OpenWorks $11,500 60,000
2777 E. Camelback Rd., Ste. 350
Phoenix, AZ 85016 * 602-224-0440
Liberty Tax Service $38,050-$49,400 50,000
4575 Bonney Rd.
Virginia Beach, VA 23462 *
757-493-0694
SOURCE: B. E. RESEARCH
Five Franchises: $50,000-$200,000
Black- Domestic
Owned Franchise
Company Type Units Units
Mini-Tankers USA Inc. Business-to- 4 30
4739 University Way N.E., #1620 Business/
Seattle, WA 98105 * 877-218-3003 Fueling
Services
Geeks on Call America Inc. Computer 6 75
814 Kempsville Rd., Ste. 106 Services
Norfolk, VA 23502 * 757-466-3448
Sign-A-Rama Business 10 450
1801 Australian Ave. South Services
West Palm Beach, FL *
561-640-5570
Express Personnel Services Staffing 11 407
8516 Northwest Expy., #200 Services
Oklahoma City, OK 73162 *
405-840-5000
Cottman Transmission Systems L.L.C. Automotive 11 370
2nd New York Drive Services
Fort Washington, PA 19034 *
215-643-5885
2002
Start-Up Average
Company Costs Sales/Units
Mini-Tankers USA Inc. $14,100-$64,000 $422,700
4739 University Way N.E., #1620
Seattle, WA 98105 * 877-218-3003
Geeks on Call America Inc. $37,350-$89,150 $91,053
814 Kempsville Rd., Ste. 106
Norfolk, VA 23502 * 757-466-3448
Sign-A-Rama $120,000 N/A
1801 Australian Ave. South
West Palm Beach, FL *
561-640-5570
Express Personnel Services $140,000-$160,000 S2.5 million
8516 Northwest Expy., #200
Oklahoma City, OK 73162 *
405-840-5000
Cottman Transmission Systems L.L.C. $170,000-$186,5000 $553,741
2nd New York Drive
Fort Washington, PA 19034 *
215-643-5885
SOURCE: BE RESEARCH
Five Franchises: $200,000-$500,000
Black- Domestic
Owned Franchise
Company Type Units Units
Total Car Franchising Corporation Automotive 5 277
642 Century Circle Services,
Conway, SC 29526 * 843-347-8818 Fueling
Services
Ben & Jerry's Food 4 268
30 Community Drive
South Burlington, UT 05403 *
802-846-1500
Golden Krust Caribbean Bakery Inc. Food 64 65
3958 Park Ave.
Bronx, NY 10457 * 718-583-0360
Meineke Car Care Centers Inc. Automotive 18 828
128 South Tryon, Ste. 900 Services
Charlotte, NC 28202 *
704-644-8194
Cinnabon Inc. Food 447
Six Concourse Parkway, Ste. 1700
Atlanta, GA 30328 * 770-353-3047
2002
Start-Up Average
Company Costs Sales/Units
Total Car Franchising Corporation $50,000-$500,000 $100,000
642 Century Circle
Conway, SC 29526 * 843-347-8818
Ben & Jerry's $129,500-$316,000 N/A
30 Community Drive
South Burlington, UT 05403 *
802-846-1500
Golden Krust Caribbean Bakery Inc. $135,150-$325,851 N/A
3958 Park Ave.
Bronx, NY 10457 * 718-583-0360
Meineke Car Care Centers Inc. $180,000-$365,000 $449,973
128 South Tryon, Ste. 900
Charlotte, NC 28202 *
704-644-8194
Cinnabon Inc. $251,500-$340,000 $155,000-
Six Concourse Parkway, Ste. 1700 $1.18 million
Atlanta, GA 30328 * 770-353-3047
SOURCE: B. E. RESEARCH
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